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E Margin Stock Pick - Buy L&T Finance Holdings Ltd For Target Rs. 120 - HDFC Securities 

* After correcting from a high of 199 touched in December 2017, L&T Finance Holdings found support around the 42 levels in March 2020. These levels roughly correspond to previous major lows of the stock tested in 2012, implying that it is a strong support.

* The stock has since then rebounded and gradually made higher tops and higher bottoms over the last several months. Today the stock broke out of a two week trading range on the back of healthy volumes, indicating that the uptrend looks set to continue.

* Technical indicators are giving positive signals as the stock is trading above the 20-day and 50-day SMA. Short term momentum indicators like the 14-day RSI are in rising mode and not overbought. This indicates potential for more upsides.

* With the intermediate and long term technical setups too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy. Our entry levels with stop loss and targets have been mentioned above.

Buy L&T Finance Holdings Ltd 2-6 Months @ 93-99.3 CMP 98.25 TGT 120 SL 88

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